EX-99.1 2 d794174dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Fabrinet Announces Fourth Quarter and Fiscal Year 2019 Financial Results

 

  •  

Fiscal Year 2019 Revenue Increases 15% from Fiscal Year 2018

 

  •  

GAAP and Non-GAAP Net Income Grow 44% and 26%, Respectively

 

  •  

Cash Flow From Operations of $147.4 Million Up 7% From Prior Year

BANGKOK, Thailand – August 19, 2019 – Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its fourth quarter and fiscal year ended June 28, 2019.

Seamus Grady, Chief Executive Officer of Fabrinet, said, “We are pleased with our strong revenue and earnings performance in the fourth quarter, which represented quarterly records for the company. These results reflect the diversity of our customers and the markets that we serve.”

Grady continued, “These strong fourth quarter results also capped the best fiscal year in our history, as we generated record revenue, profitability and operating cash flows, on a full year basis. While we expect first quarter revenue and EPS to moderate from our record fourth quarter performance, we remain optimistic that our leadership as a trusted manufacturing partner positions us for continued success in fiscal 2020 and beyond.”

Fourth Quarter Fiscal Year 2019 Financial Highlights

GAAP Results

 

  •  

Revenue for the fourth quarter of fiscal year 2019 was $405.1 million, compared to revenue of $345.3 million for the comparable period in fiscal year 2018.

 

  •  

GAAP net income for the fourth quarter of fiscal year 2019 was $33.0 million, compared to GAAP net income of $22.8 million for the fourth quarter of fiscal year 2018. GAAP net income for the fourth quarter of fiscal year 2019 included a foreign exchange gain of $1.8 million, or $0.05 per diluted share, compared to a foreign exchange loss of ($0.9) million, or ($0.02) per diluted share, for the fourth quarter of fiscal year 2018.

 

  •  

GAAP net income per diluted share for the fourth quarter of fiscal year 2019 was $0.88, compared to GAAP net income per diluted share of $0.60 for the fourth quarter of fiscal year 2018.

Non-GAAP Results

 

  •  

Non-GAAP net income for the fourth quarter of fiscal year 2019 was $37.6 million, compared to non-GAAP net income of $30.7 million for the fourth quarter of fiscal year 2018. Non-GAAP net income for the fourth quarter of fiscal year 2019 included a foreign exchange gain of $1.8 million, or $0.05 per diluted share, compared to a foreign exchange loss of ($0.9) million, or ($0.02) per diluted share, for the fourth quarter of fiscal year 2018.

 

  •  

Non-GAAP net income per diluted share for the fourth quarter of fiscal year 2019 was $1.00, compared to non-GAAP net income per diluted share of $0.81 for the same period a year ago.

Fiscal Year 2019 Financial Highlights

GAAP Results

 

  •  

Revenue for fiscal year 2019 was $1,584.3 million, an increase of 15% compared to revenue of $1,371.9 million for fiscal year 2018.

  •  

GAAP net income for fiscal year 2019 was $121.0 million, an increase of 44% compared to GAAP net income of $84.2 million for fiscal year 2018. GAAP net income for fiscal year 2019 included a foreign exchange gain of $1.4 million, or $0.04 per diluted share, compared to a foreign exchange loss of ($6.6) million, or ($0.17) per diluted share, for fiscal year 2018.

 

  •  

GAAP net income per diluted share for fiscal year 2019 was $3.23, compared to GAAP net income per diluted share of $2.21 for fiscal year 2018.

Non-GAAP Results

 

  •  

Non-GAAP net income for fiscal year 2019 was $142.6 million, an increase of 26% compared to non-GAAP net income of $113.5 million for fiscal year 2018. Non-GAAP net income for fiscal year 2019 included a foreign exchange gain of $1.4 million, or $0.04 per diluted share, compared to a foreign exchange loss of ($6.6) million, or ($0.17) per diluted share, for fiscal year 2018.

 

  •  

Non-GAAP net income per diluted share for fiscal year 2019 was $3.81, compared to non-GAAP net income per diluted share of $2.98 for fiscal year 2018.

Business Outlook

Based on information available as of August 19, 2019, Fabrinet is issuing guidance for its first quarter of fiscal year 2020 ending September 27, 2019, as follows:

 

  •  

Fabrinet expects first quarter revenue to be in the range of $386 million to $394 million.

 

  •  

GAAP net income per diluted share is expected to be in the range of $0.64 to $0.68, based on approximately 37.4 million fully diluted shares outstanding.

 

  •  

Non-GAAP net income per diluted share is expected to be in the range of $0.80 to $0.84, based on approximately 37.4 million fully diluted shares outstanding.

Conference Call Information

 

What:    Fabrinet Fourth Quarter and Fiscal Year 2019 Financial Results Call
When:    Monday, August 19, 2019
Time:    5:00 p.m. ET
Live Call:   

(888) 357-3694, domestic

(253) 237-1137, international

Passcode: 5568615

Replay:   

(855) 859-2056, domestic

(404) 537-3406, international

Passcode: 5568615

Webcast:    http://investor.fabrinet.com/ (live and replay)

This press release and any other information related to the call will also be posted on Fabrinet’s website at http://investor.fabrinet.com. A recorded version of this webcast will be available approximately two hours after the call and will be archived on Fabrinet’s website for a period of one year.

About Fabrinet

Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging,

integration, final assembly and test. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China and the United Kingdom. For more information visit: www.fabrinet.com.

Forward-Looking Statements

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include: (1) statements regarding our expectation that revenue and EPS for the first quarter of fiscal year 2020 will moderate from our performance for the fourth quarter of fiscal year 2019, as well as our expectation that we will have success in fiscal year 2020 and beyond; and (2) all of the statements under the “Business Outlook” section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the first quarter of fiscal year 2020. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: less customer demand for our products and services than forecasted; less growth in the optical communications, industrial lasers and sensors markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People’s Republic of China, the U.S. and the U.K.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q, filed on May 7, 2019. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financials

We refer to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding our ongoing operational performance. Non-GAAP net income excludes: share-based compensation expenses; depreciation of fair value uplift; ASC 606 adoption impact on gross profit; severance payments; expenses related to our CFO/CEO search; amortization of intangibles; business combination expenses and consulting fee; amortization of debt issuance costs; and expenses related to reduction in workforce. We have excluded these items in order to enhance investors’ understanding of our underlying operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in making financial and operational decisions. In addition, these non-GAAP financial measures are used to measure company performance for the purposes of determining employee incentive plan compensation.

SOURCE: Fabrinet

Investor Contact:

Garo Toomajanian

ir@fabrinet.com

FABRINET

CONSOLIDATED BALANCE SHEETS

 

(in thousands of U.S. dollars, except share data and par value)    June 28,
2019		     June 29,
2018		  

Assets

     

Current assets

     

Cash and cash equivalents

    $ 180,839     $ 158,102  

Restricted cash in connection with business acquisition

      —         3,331  

Short-term investments

      256,493       174,269  

Trade accounts receivable, net

      260,602       246,912  

Contract assets

      12,447       —    

Inventory, net

      293,612       257,687  

Prepaid expenses

      8,827       8,061  

Other current assets

      11,015       5,948  
  

 

 

    

 

 

  

Total current assets

      1,023,835       854,310  
  

 

 

    

 

 

  

Non-current assets

     

Long-term restricted cash

      7,402       —    

Property, plant and equipment, net

      210,686       219,640  

Intangibles, net

      3,887       4,880  

Goodwill

      3,705       3,828  

Deferred tax assets

      5,679       5,280  

Other non-current assets

      124       80  
  

 

 

    

 

 

  

Total non-current assets

      231,483       233,708  
  

 

 

    

 

 

  

Total Assets

    $ 1,255,318     $ 1,088,018  
  

 

 

    

 

 

  

Liabilities and Shareholders’ Equity

     

Current liabilities

     

Bank borrowings

    $ 3,250     $ 3,250  

Trade accounts payable

      257,617       220,159  

Contract liabilities

      2,239       —    

Capital lease liability, current portion

      398       451  

Income tax payable

      1,801       709  

Deferred liability in connection with business acquisition

      —         3,331  

Accrued payroll, bonus and related expenses

      16,510       13,476  

Accrued expenses

      8,997       9,013  

Other payables

      22,236       19,728  
  

 

 

    

 

 

  

Total current liabilities

      313,048       270,117  
  

 

 

    

 

 

  

Non-current liabilities

     

Long-term loan from bank

      57,688       60,938  

Deferred tax liability

      3,561       2,284  

Capital lease liability, non-current portion

      102       516  

Severance liabilities

      15,209       10,162  

Other non-current liabilities

      2,611       3,062  
  

 

 

    

 

 

  

Total non-current liabilities

      79,171       76,962  
  

 

 

    

 

 

  

Total Liabilities

      392,219       347,079  
  

 

 

    

 

 

  

Commitments and contingencies

     

Shareholders’ equity

     

Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 28, 2019 and June 29, 2018)

      —         —    

Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,230,753 shares and 37,723,733 shares issued as of June 28, 2019 and June 29, 2018, respectively; and 36,841,650 shares and 36,434,630 shares outstanding as of June 28, 2019 and June 29, 2018, respectively)

      382       377  

Additional paid-in capital

      158,299       151,797  

Less: Treasury shares (1,389,103 shares and 1,289,103 shares as of June 28, 2019 and June 29, 2018, respectively)

      (47,779 )      (42,401 ) 

Accumulated other comprehensive loss

      (2,386 )      (1,257 ) 

Retained earnings

      754,583       632,423  
  

 

 

    

 

 

  

Total Shareholders’ Equity

      863,099       740,939  
  

 

 

    

 

 

  

Total Liabilities and Shareholders’ Equity

    $ 1,255,318     $ 1,088,018  
  

 

 

    

 

 

  

FABRINET

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

     Three Months Ended     Twelve Months Ended  
(in thousands of U.S. dollars, except per share data)    June 28,
2019		     June 29,
2018		     June 28,
2019		     June 29,
2018		  

Revenues

    $ 405,127     $ 345,327     $ 1,584,335     $ 1,371,925  

Cost of revenues

      (358,501 )      (306,346 )      (1,405,111 )      (1,218,513 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      46,626       38,981       179,224       153,412  

Selling, general and administrative expenses

      (13,771 )      (16,559 )      (55,067 )      (57,812 ) 

Expenses related to reduction in workforce

      (789 )      —         (1,516 )      (1,776 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      32,066       22,422       122,641       93,824  

Interest income

      1,929       1,371       6,699       3,925  

Interest expense

      (1,708 )      (1,107 )      (5,381 )      (3,606 ) 

Foreign exchange gain (loss), net

      1,814       (877 )      1,406       (6,587 ) 

Other income, net

      70       35       868       473  
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      34,171       21,844       126,233       88,029  

Income tax expense

      (1,214 )      924       (5,278 )      (3,862 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      32,957       22,768       120,955       84,167  
  

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive loss, net of tax:

         

Change in net unrealized gain (loss) on available-for-sale securities

      644       29       2,043       (1,019 ) 

Change in net unrealized gain (loss) on derivative instruments

      1       —         (1 )      (1 ) 

Change in retirement benefits plan – prior service cost

      (2,537 )      —         (2,537 )      —    

Change in foreign currency translation adjustment

      (415 )      (1,247 )      (634 )      111  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive loss, net of tax

      (2,307 )      (1,218 )      (1,129 )      (909 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net comprehensive income

      30,650       21,550     $ 119,826     $ 83,258  
  

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share

         

Basic

    $ 0.89     $ 0.62     $ 3.29     $ 2.26  

Diluted

    $ 0.88     $ 0.60     $ 3.23     $ 2.21  

Weighted average number of ordinary shares outstanding
(thousands of shares)

 

Basic

      36,836       36,828       36,798       37,257  

Diluted

      37,511       37,766       37,415       38,035  

FABRINET

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

     Years Ended  
(in thousands of U. S. dollars)    June 28,
2019		     June 29,
2018		  

Cash flows from operating activities

     

Net income

    $ 120,955     $ 84,167  

Adjustments to reconcile net income to net cash provided by operating activities

     

Depreciation and amortization

      29,944       29,087  

(Gain) loss on disposal and impairment of property, plant and equipment

      (4 )      18  

Loss on disposal of intangibles

      149       447  

Loss from sales and maturities of available-for-sale securities

      135       364  

Amortization of investment discount

      (592 )      (506 ) 

Amortization of deferred debt issuance costs

      —         994  

Allowance for doubtful accounts (reversal)

      36       (23 ) 

Unrealized (gain) loss on exchange rate and fair value of derivative

      (6,980 )      4,222  

Share-based compensation

      17,157       22,581  

Deferred income tax

      879       (2,074 ) 

Severance liabilities

      3,343       1,801  

Other non-cash expenses

      (450 )      332  

(Reversal of) Inventory obsolescence

      (563 )      (436 ) 

Changes in operating assets and liabilities

     

Trade accounts receivable

      (13,494 )      17,852  

Contract assets

      (2,570 )      —    

Inventory

      (44,035 )      (19,432 ) 

Other current assets and non-current assets

      (186 )      (4,464 ) 

Trade accounts payable

      38,807       3,502  

Contract liabilities

      2,239       —    

Income tax payable

      1,092       (1,267 ) 

Other current liabilities and non-current liabilities

      1,532       915  
  

 

 

    

 

 

  

Net cash provided by operating activities

      147,394       138,080  
  

 

 

    

 

 

  

Cash flows from investing activities

     

Purchase of short-term investments

      (233,080 )      (152,908 ) 

Proceeds from sales of short-term investments

      99,142       61,795  

Proceeds from maturities of short-term investments

      54,215       67,417  

Payments in connection with business acquisition, net of cash acquired

      —         —    

Purchase of property, plant and equipment

      (18,661 )      (33,825 ) 

Proceeds from disposal of property, plant and equipment

      599       449  

Purchase of intangibles

      (282 )      (1,577 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (98,067 )      (58,649 ) 
  

 

 

    

 

 

  

Cash flows from financing activities

     

Proceeds of short-term loan from bank

      —         5,000  

Repayment of short-term loan from bank

      —         (1,003 ) 

Repayment of long-term loan from bank

      (3,250 )      (11,212 ) 

Proceeds from issuance of ordinary shares under employee share option plan

      —         1,436  

Repayment of capital lease liability

      (468 )      (417 ) 

Repurchase of ordinary shares

      (5,378 )      (42,401 ) 

Release of restricted cash held in connection with business acquisition

      (3,478 )      —    

Withholding tax related to net share settlement of restricted share units

      (10,649 )      (5,509 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (23,223 )      (54,106 ) 

Net increase in cash, cash equivalents and restricted cash

    $ 26,104     $ 25,325  
  

 

 

    

 

 

  

Movement in cash, cash equivalents and restricted cash

     

Cash, cash equivalents and restricted cash at beginning of period

    $ 161,433     $ 137,137  

Increase (decrease) in cash, cash equivalents and restricted cash

      26,104       25,325  

Effect of exchange rate on cash, cash equivalents and restricted cash

      704       (1,029 ) 
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash at end of period

    $ 188,241     $ 161,433  
  

 

 

    

 

 

  

FABRINET

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of same amounts shown in the consolidated statements of cash flows:

 

(amount in thousands)    As of
June 28,
2019		      As of
June 29,
2018		  

Cash and cash equivalents

    $ 180,839      $ 158,102  

Restricted cash

      7,402        3,331  
  

 

 

     

 

 

  

Cash, cash equivalents and restricted cash

    $ 188,241      $ 161,433  
  

 

 

     

 

 

  

FABRINET

RECONCILIATION OF ASC 605 TO ASC 606

 

     Three Months Ended
June 28, 2019		  
(in thousands of U.S. dollars, except per share data)    As reported
under
ASC 606		     Adjustment     ASC 605  

Revenues

    $ 405,127     $ (1,894 )    $ 403,233  

Cost of revenues

      (357,144 )      1,404       (355,740 ) 
  

 

 

    

 

 

    

 

 

  

Gross profit

      47,983       (490 )      47,493  

Selling, general and administrative expenses

      (11,267 )      —         (11,267 ) 
  

 

 

    

 

 

    

 

 

  

Operating income

      36,716       (490 )      36,226  

Interest income

      1,929       (10 )      1,919  

Interest expense

      (1,708 )      —         (1,708 ) 

Foreign exchange gain, net

      1,814       —         1,814  

Other income, net

      70       —         70  
  

 

 

    

 

 

    

 

 

  

Income before income taxes

      38,821       (500 )      38,321  

Income tax expense

      (1,214 )      —         (1,214 ) 
  

 

 

    

 

 

    

 

 

  

Net income

      37,607       (500 )      37,107  
  

 

 

    

 

 

    

 

 

  

Other comprehensive loss, net of tax:

       

Change in net unrealized gain on available-for-sale securities

      644       —         644  

Change in net unrealized gain on derivative instruments

      1       —         1  

Change in retirement benefits plan - prior service cost

      (2,537 )      —         (2,537 ) 

Change in foreign currency translation adjustment

      (415 )      —         (415 ) 
  

 

 

    

 

 

    

 

 

  

Total other comprehensive loss, net of tax

      (2,307 )      —         (2,307 ) 
  

 

 

    

 

 

    

 

 

  

Net comprehensive income

    $ 35,300     $ (500 )    $ 34,800  
  

 

 

    

 

 

    

 

 

  

Earnings per share

       

Basic

    $ 1.02     $ (0.01 )    $ 1.01  

Diluted

    $ 1.00     $ (0.01 )    $ 0.99  

Weighted-average number of ordinary shares outstanding (thousands of shares)

 

  

Basic

      36,836       —         36,836  

Diluted

      37,511       —         37,511  

FABRINET

RECONCILIATION OF ASC 605 TO ASC 606

 

     Twelve Months Ended
June 28, 2019		  
(in thousands of U.S. dollars, except per share data)    As reported
under
ASC 606		     Adjustment     ASC 605  

Revenues

    $ 1,584,055     $ (2,560 )    $ 1,581,495  

Cost of revenues

      (1,398,866 )      1,745       (1,397,121 ) 
  

 

 

    

 

 

    

 

 

  

Gross profit

      185,189       (815 )      184,374  

Selling, general and administrative expenses

      (40,909 )      —         (40,909 ) 
  

 

 

    

 

 

    

 

 

  

Operating income

      144,280       (815 )      143,465  

Interest income

      6,699       (10 )      6,689  

Interest expense

      (5,381 )      —         (5,381 ) 

Foreign exchange gain, net

      1,406       —         1,406  

Other income, net

      868       —         868  
  

 

 

    

 

 

    

 

 

  

Income before income taxes

      147,872       (825 )      147,047  

Income tax expense

      (5,278 )      —         (5,278 ) 
  

 

 

    

 

 

    

 

 

  

Net income

      142,594       (825 )      141,769  
  

 

 

    

 

 

    

 

 

  

Other comprehensive loss, net of tax:

       

Change in net unrealized gain on available-for-sale securities

      2,043       —         2,043  

Change in net unrealized loss on derivative instruments

      (1 )      —         (1 ) 

Change in retirement benefits plan - prior service cost

      (2,537 )      —         (2,537 ) 

Change in foreign currency translation adjustment

      (634 )      —         (634 ) 
  

 

 

    

 

 

    

 

 

  

Total other comprehensive loss, net of tax

      (1,129 )      —         (1,129 ) 
  

 

 

    

 

 

    

 

 

  

Net comprehensive income

    $ 141,465     $ (825 )    $ 140,640  
  

 

 

    

 

 

    

 

 

  

Earnings per share

       

Basic

    $ 3.88     $ (0.03 )    $ 3.85  

Diluted

    $ 3.81     $ (0.02 )    $ 3.79  

Weighted-average number of ordinary shares outstanding (thousands of shares)

 

  

Basic

      36,798       —         36,798  

Diluted

      37,415       —         37,415  

FABRINET

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

 

     Three Months Ended      Twelve Months Ended  
     June 28, 2019     June 29, 2018      June 28, 2019     June 29, 2018  
(in thousands of U.S. dollars, except per share data)    Net
income		     Diluted
EPS		     Net
income		      Diluted
EPS		      Net
income		     Diluted
EPS		     Net
income		      Diluted
EPS		  

GAAP measures

      32,957       0.88       22,768        0.60        120,955       3.23       84,167        2.21  

Items reconciling GAAP net income & EPS to non-GAAP net income & EPS:

                    

Related to cost of revenues:

                    

Share-based compensation expenses

      1271       0.03       1,507        0.04        5,655       0.15       6,784        0.18  

Depreciation of fair value uplift

      86       0.00       89        0.00        341       0.01       330        0.01  

ASC 606 adoption impact on gross profit

      —         —         —          —          (31 )      (0.00 )      —          —    
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total related to gross profit

      1,357       0.04       1,596        0.04        5,965       0.16       7,114        0.19  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Related to selling, general and administrative expenses:

                    

Share-based compensation expenses

      2,513       0.07       3,370        0.09        11,502       0.31       15,797        0.42  

Expenses related to CFO/CEO search

      (567 )      (0.02 )      —          —          290       0.01       204        0.01  

Amortization of intangibles

      163       0.00       199        0.01        694       0.02       780        0.02  

Business combination expenses and consulting fee

      224       0.01       —          —          552       0.01       117        0.00  

Severance payments

      171       0.00       2,142        0.06        1,120       0.03       2,142        0.06  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total related to selling, general and administrative expenses

      2,504       0.07       5,711        0.15        14,158       0.38       19,040        0.50  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Related to other incomes and other expenses:

                    

Expenses related to reduction in workforce

      789       0.02       —          —          1,516       0.04       1,776        0.05  

Amortization of debt issuance costs

      —         —         634        0.02        —         —         1,412        0.04  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total related to other incomes and other expenses

      789       0.02       634        0.02        1,516       0.04       3,188        0.08  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total related to net income & EPS

      4,650       0.12       7,941        0.21        21,639       0.58       29,342        0.77  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-GAAP measures

      37,607       1.00       30,709        0.81        142,594       3.81       113,509        2.98  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Shares used in computing diluted net income per share

                    

GAAP diluted shares

        37,511          37,766          37,415          38,035  

Non-GAAP diluted shares

        37,511          37,766          37,415          38,035  

FABRINET

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

 

(amount in thousands)    Three Months Ended     Twelve Months Ended  
     June 28,
2019		     June 29,
2018		     June 28,
2019		     June 29,
2018		  

Net cash provided by operating activities

    $ 41,890     $ 48,286     $ 147,394     $ 138,080  

Less: Purchase of property, plant and equipment

      (5,450 )      (5,557 )      (18,661 )      (33,825 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP free cash flow

    $ 36,440     $ 42,729     $ 128,733     $ 104,255  
  

 

 

    

 

 

    

 

 

    

 

 

  

FABRINET

GUIDANCE FOR QUARTER ENDING SEPTEMBER 27, 2019

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

 

     Diluted
EPS		  

GAAP net income per diluted share:

    $ 0.64 to $0.68  

Related to cost of revenues:

   

Share-based compensation expenses

      0.04  
  

 

 

  

Total related to gross profit

      0.04  
  

 

 

  

Related to selling, general and administrative expenses:

   

Share-based compensation expenses

      0.11  

Business combination expenses

      0.01  
  

 

 

  

Total related to selling, general and administrative expenses

      0.12  
  

 

 

  

Total related to net income & EPS

      0.16  
  

 

 

  

Non-GAAP net income per diluted share

    $ 0.80 to $0.84